Current:Home > InvestAverage rate on a 30-year mortgage eases to 6.35%, its lowest level in more than a year-DB Wealth Institute B2 Expert Reviews
Average rate on a 30-year mortgage eases to 6.35%, its lowest level in more than a year
View Date:2024-12-23 23:23:08
The average rate on a 30-year mortgage eased for the second week in a row and remains at its lowest level in more than a year, good news for prospective homebuyers facing home prices near all-time highs.
The rate fell to 6.35% from 6.46% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.18%.
The last time the average rate was this low was May 11, 2023.
Borrowing costs on 15-year fixed-rate mortgages also fell this week, good news for homeowners seeking to refinance their home loan at a lower rate. The average rate fell to 5.51% from 5.62% last week. A year ago, it averaged 6.55%, Freddie Mac said.
“Mortgage rates fell again this week due to expectations of a Fed rate cut,” said Sam Khater, Freddie Mac’s chief economist. “Rates are expected to continue their decline, and while potential homebuyers are watching closely, a rebound in purchase activity remains elusive until we see further declines.”
Signs of waning inflation and a cooling job market have raised expectations that the Federal Reserve will cut its benchmark interest rate next month for the first time in four years.
Elevated mortgage rates, which can add hundreds of dollars a month in costs for borrowers, have kept many would-be homebuyers on the sidelines, extending the nation’s housing slump into its third year.
Sales of previously occupied U.S. homes are running below last year’s pace, though they ended a four-month slide in July.
After climbing to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year — more than double what it was just three years ago. But this month, the average rate has made its biggest downshift in more than a year.
veryGood! (239)
Related
- Judge extends the time to indict the driver accused of killing Johnny Gaudreau and his brother
- Idaho militia leader Ammon Bundy is due back in court. But will he show up?
- For Emergency Personnel, Disaster Planning Must Now Factor in Covid-19
- American Climate Video: Fighting a Fire That Wouldn’t Be Corralled
- NFL MVP rankings: Does Steelers QB Russell Wilson deserve any consideration?
- On a Melting Planet, More Precisely Tracking the Decline of Ice
- Here's Your First Look at The Summer I Turned Pretty Season 2
- American Climate Video: As Hurricane Michael Blew Ashore, One Young Mother Had Nowhere to Go
- FanDuel Sports Network regional channels will be available as add-on subscription on Prime Video
- Everwood Actor John Beasley Dead at 79
Ranking
- The Masked Singer's Ice King Might Be a Jonas Brother
- American Climate Video: Hurricane Michael Intensified Faster Than Even Long-Time Residents Could Imagine
- American Climate Video: How Hurricane Michael Destroyed Tan Smiley’s Best Laid Plans
- 16 Father's Day Gift Ideas That Are So Cool, You'll Want to Steal From Dad
- Georgia House Democrats shift toward new leaders after limited election gains
- Florida woman who shot Black neighbor through door won't face murder charge
- Shop Amazing Deals From J. Crew's Memorial Day Sale: 75% Off Trendy Dresses, Swimwear & More
- Shop the Best lululemon Deals During Memorial Day Weekend: $39 Sports Bras, $29 Tops & More on Sale
Recommendation
-
California voters reject measure that would have banned forced prison labor
-
Deaths from xylazine are on the rise. The White House has a new plan to tackle it
-
Drought Fears Take Hold in a Four Corners Region Already Beset by the Coronavirus Pandemic
-
Raven-Symoné Reveals Why She's Had Romantic Partners Sign NDAs
-
Don't Miss This Sweet Moment Between Taylor Swift and Travis Kelce's Dads at the Kansas City Chiefs Game
-
Fossil Fuel Emissions Push Greenhouse Gas Indicators to Record High in May
-
Transcript: David Martin and John Sullivan on Face the Nation, June 25, 2023
-
Woman allegedly shoots Uber driver, thinking he kidnapped her and was taking her to Mexico